News Corp. Reports Loss on Publishing Write-Down

By Avi Salzman

News Corp. (NWSA) reported a $1.6 billion loss for the second quarter after writing down the value of its publishing business by $2.9 billion. Shares fell 3% after-hours.

The company’s core earning per share of 32 cents matched analysts’ expectations. Revenue of $8.37 billion missed analysts’ estimates of $8.74 billion. Operating income at its cable networks grew 19%. The company also recorded a $224 million charge “related to the ongoing investigations initiated upon the closure of The News of the World,” the British newspaper that closed amidst a wire-tapping scandal.

Investors have cheered the company’s decision to spin-off its publishing assets, which contribute much less to the bottom line than the entertainment business.

About Stocks To Watch

Earnings reports, corporate strategies and analyst insights are all part of what moves stocks, and they’re all covered by the Stocks to Watch blog. We also look at macro issues, investor sentiments and hidden trends that are affecting the market. Stocks to Watch gives you the full picture of the U.S. stock markets, all day long.

The blog is written by Ben Levisohn, a former stock trader who has covered financial markets for the Wall Street Journal, Bloomberg and BusinessWeek.